Film Industry Filmmaker Declared Guilty of Scamming Streaming Giant Netflix Out of $11 Million for Non-Existent Series
A well-known film director was found guilty this week for masterminding a plot that defrauded the streaming service Netflix out of a staggering sum earmarked for a show that was never produced, prosecutors said.
Particulars of the Case
Carl Rinsch, best known for helming the film *47 Ronin* featuring the actor Keanu Reeves, was convicted on multiple charges including financial fraud and money laundering, according to court records and government attorneys in New York.
"Today's verdict demonstrates that if an individual takes money from investors, we will follow the money and ensure they face consequences," said a U.S. attorney.
The Alleged Scheme
Authorities claimed that Netflix had originally disbursed Rinsch approximately $44 million for an unfinished sci-fi series titled *White Horse*. Later, the company sent an additional payment after he asserted he required more funding to finalize the project.
Yet, rather than using the money for the series, Rinsch redirected the capital to a personal account. There, he made a string of failed stock market bets, losing roughly half of the $11 million within a few months, according to the case.
Extravagant Purchases with Studio Funds
After the failed investments, Rinsch allegedly placed the leftover money into the digital currency market, netting some profit. However, he then deposited those proceeds into his personal account.
What followed next involved significant luxury spending. Prosecutors detailed purchases that included:
- 5 luxury car automobiles and one sports car.
- Over six hundred and fifty-two thousand dollars on timepieces and apparel.
- Two custom mattresses for approximately $638,000.
- A further two hundred and ninety-five thousand dollars on luxury bedding and household items.
In addition, he reportedly used some of the funds to settle about one point eight million dollars in credit card bills.
Legal Reaction and Sentencing
In a statement, Rinsch's legal counsel expressed disagreement with the outcome, suggesting it "establishes a concerning precedent for creatives who become involved in contractual and creative disputes with their benefactors."
Rinsch, 48, never completed the television series. His sentencing date is set for April. The company involved declined to issue a statement on the matter.
